Tag Archive for: Economic Growth

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5 Innovative Ukrainian Inventions

Ukrainian InventionsUkraine is the second poorest country in Europe, with a per capita GDP of less than $3000. Ukraine had a difficult time rebuilding its economy after the collapse of the USSR in 1991 and was left with a crumbling economy due to corruption, poor infrastructure and many other factors. Despite the shortcomings of Ukraine’s economy, it has shown incredible potential for innovation and ingenuity because of the high-tech inventions that have come out of the Ukrainian workforce. Increased investment in Ukrainian inventions would drive it to success and improve the economy by creating stable work conditions. Improving infrastructure and creating sustainable job opportunities would help the economy grow and help Ukraine continue making world-renowned inventions.

5 High-Tech Ukrainian Inventions

  1. Grammarly: Grammarly was founded in Ukraine by Alex Shevchenko and Max Lytvyn in 2009. Grammarly uses AI software to proofread text on sites like Google, LinkedIn, various social media sites and more, while offering grammatical corrections. It is now a U.S.-based company and a widely popular tool for producing academic papers, professional documents and other bodies of text.
  2. Snapchat Filters: Snapchat filters and lenses first came about when Snapchat acquired Ukrainian startup, Looksery. Looksery is a facial recognition software that allows users to put filters on themselves while video chatting. Looksery was bought in 2015, started by a Ukrainian team with Victor Shaburov as the CEO. Snapchat uses the technology to create its filters, one of the many successful and important updates to the social media app. Instagram, another social media app, followed in the footsteps of Snapchat and introduced a version of Instagram photo filters in 2018.
  3. Apps for Deaf People: BeWarned, a Ukrainian-based startup co-founded by Vitaliy Potapchuck, is an application that people who are deaf can download on their phones to help them communicate with others. Potapchuck is also deaf and designed the app to pick up possible dangerous sounds and call for emergency help. BeWarned also makes other software for those who are deaf and hard of hearing.
  4. Virtual Reality Gloves: In 2016, a Ukrainian team of engineers created a prototype virtual reality glove that allows users to “feel” virtual reality items as if they were real. The glove mimics real-life hand motions and is used for a variety of things besides virtual reality gaming. Healthcare professionals can use the glove to study mobility and disease treatments. Co-founder, Denis Pankrushev, wanted the technology to “open new horizons for mankind.” This opened doors for virtual reality innovation and put Ukrainian technology startups in the spotlight.
  5. Uber for Yachts: The company CharterClick was started by three Ukrainian immigrants in Dubai to provide an easy way to rent a boat or luxury yacht for events. The team created CharterClick to show that complicated tasks like renting an expensive cruise with a full crew, can be completed in a short amount of time with just a few clicks. The service operates in more than 40 countries and is dubbed “the world’s most convenient vessel booking service.”

Ukrainian Inventions: Potential for the Economy

Ukraine ranked second place in the Top Three Innovation Economies by lower-middle-income group according to the Global Innovation Index. It is also ranked 45th in the world by the Global Innovation Index. There is massive potential for Ukrainian technology to continue its path of innovation and unlock itself to the European market. International investment can help improve the poor infrastructure that drives creative minds and job opportunities out of the country.

Google Ukraine’s CEO recognizes the brilliant minds of the country, but notes that many of them choose to work in the U.S. because of more “favorable conditions.” Favorable conditions include better infrastructure, better pay and a market that attracts investors. Ukraine is closed off to the international market because of its poor societal conditions, which is detrimental to its working-class and the overall economy.

How Supportive Infrastructure Will Improve the Economy

Ukrainian infrastructure is one of the main reasons that working in the country is difficult. The majority of the roads in Ukraine are too poor to carry cargo and passengers, limiting trades in the country and making it difficult to get to work. Ukraine has set an infrastructure plan for 2030 that includes improvement of all transportation systems with a high price tag. Over the next 10 years, Ukraine requires up to $25 billion of investment to complete the plan as it can only fund $.1.5 billion per year on its own.

Transforming Ukraine: Inventions and Infrastructure

Putting technological growth in the spotlight will attract more investors that want to see the Ukrainian technology sector thrive. Much-needed funding can come from international attention to the infrastructure problem. Improvement will create construction job opportunities and motivate the government to tend to the sectors that are struggling.

Ukrainian inventors should be able to work in their own country without having to migrate to another. Not to mention that infrastructure improvement will help many other citizens easily find work and improve the economy. Ukrainian inventions have the potential to kickstart the country’s economy and help with its development.

– Julia Ditmar
Photo: Flickr

Pakistan and India: The Battle for Rice Exports

rice exportsPakistan and India are battling a rice war, as India is attempting to gain exclusive branding rights to export basmati rice to the EU. India’s trademark “geographic indication” for basmati rice has received approval from the EU and Pakistan has three months to respond to this claim or it will not be able to export basmati rice to the EU. Further implications of expanding geographic indication could compromise other markets for Pakistan, yet its response so far has been slow and inconsistent. The EU’s decision on basmati rice exports will influence each country’s economy, and with hundreds of millions of impoverished people between the two, there is much at stake.

The Value of Rice in Pakistan and India

The basmati rice industry is one that Pakistan heavily contributes to and relies on. Pakistan contributes to 35% of global basmati rice exports and its trade to the EU has grown from 120,000 tons in 2017 to 300,000 tons in 2019. A whole 40% of Pakistan’s workers work in agriculture, with rice accounting for 20% of agricultural land.

India exported 4.4 million tons of basmati rice between 2019 and 2020, which made up 65% of global basmati rice exports.

Rice Yield Challenges

Despite rice production increasing due to new practices, rice yields in both Pakistan and India are lower than the global average. Growing challenges such as drastic climate change can negatively influence annual rice production. Experts conclude that improving irrigation facilities and increasing the use of new technology will allow the countries to effectively expand their rice yields.

Population Growth & Economic Contraction

Already the fifth most populous nation in the world, projections have determined that Pakistan will grow from 220 million to 345 million by 2045. As its population continues to grow, its economy must grow at least 7% to prevent unemployment. However, in 2019, the economy contracted from 5.5% to 1.9% and the COVID-19 crisis further exacerbated this shrinkage. Unemployment has increased each year since 2014 and currently sits between 4% and 5%. It is imperative that Pakistan jumpstarts its economy or unemployment and poverty will spread.

Poverty in South Asia

Pakistan made great strides in reducing poverty in the early 2000s but has since stalled under more recent governments. By 2015, roughly one in four people, or 50 million Pakistanis, lived under the poverty line. Furthermore, there remains little opportunity for economic improvement.

India also has few opportunities for the poor to improve their lives as it placed 76 out of 82 countries in terms of social mobility. The lack of social mobility means that most people who are born poor will die poor, with minimal chances to jump to a higher social class. India also suffers from severe social inequality and a lack of growth in rural areas. A whole 364 million out of 1.3 billion, or 28% of the world’s poor live in India. However, globalization has allowed India to bring 270 million people out of poverty between 2005 and 2015. Consequently, since 1990, the life expectancy has increased by 11 years, schooling years have increased by three years and India has increased its human development index to above the medium average.

Malnutrition Causes Infant Mortality

Pakistan has an alarmingly high infant mortality rate of 55 deaths per 1,000 live births, which is twice that of India’s. A multitude of factors causes this, most notably, the malnutrition of mothers and their infants. Although wheat and rice are produced in abundant quantities, 44% of children under 5 suffer from stunted growth due to malnutrition. The problem is not whether food is available but it is that food is not accessible for the poor.

Rice as a Key Export

In Pakistan, rice provides value both nutritionally and economically. Rice accounts for 1.4% of the GDP and the traditional basmati rice makes up 0.6% of the GDP. However, most rice is sold as an export and is not used to feed hungry mouths domestically. In 2019, Pakistan exported $2.17 billion worth of rice, of which $790 million was basmati, a 25% increase from 2018.

A whole 90% of the rice grown in India is consumed domestically. Boasting the second-largest population in the world of 1.3 billion people, India accounts for 22% of global rice production but has many more people to feed than Pakistan. India is projected to produce 120 million tons of rice between 2020 and 2021.

Basmati rice exports generate massive profit for each country, If one country were to gain an advantage over the market, it would create enormous value for the winner and dire consequences for the loser. The winner would stand to gain economically and competitively as a result of increased production and profits. Additionally, increased demand for agricultural workers and production in rural areas would create revenue in historically impoverished areas.

– Adrian Rufo
Photo: Flickr

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Top 10 Facts About Life Expectancy in Japan

Life Expectancy in JapanYear after year, Japan consistently ranks as one of the top countries for life expectancy. These top 10 facts about life expectancy in Japan is a reflection of economic developments that occurred since World War II.

Top 10 Facts About Life Expectancy in Japan

  1. Japan ranks second in the world for life expectancy, with the average Japanese citizen living to 85.0 years. The life expectancy for the average female in Japan is 88.1 years and 81.9 years for males. There has been a fairly consistent difference in the life expectancy between women and men in Japan. Currently, women are expected to live around 6.2 years longer than men. Prior to 1990, the country had not even made the list of the top 100 countries with the highest life expectancies.
  2. The fertility rate in 1955 for Japan was 3.0 live births per women, which has decreased to 1.4 in 2020. A decrease may appear worrisome but there is a clear correlation between fertility rates and wealth. Poorer nations tend to have high fertility rates which continues a cycle of poverty but intermediate levels of fertility tend to represent an economically stable, wealthy country.
  3. Infant mortality and overall child mortality rates have greatly decreased since the 1950s. In 1950, the infant mortality rate was roughly 47 deaths per 1,000 births and the number of deaths for children under 5 was 72 per 1,000 births. As of 2020, the infant mortality rate and deaths for children under the age 5 is 1.6 and 2.2 per 1,000 births, respectively. These statistics display growth that has contributed to a higher life expectancy in Japan.
  4. Diet and lifestyle are major contributors as well. Japanese people tend to enjoy well-balanced, nutritious meals that consist of vegetables, fruits, fish and high-grain based foods. This diet is low in saturated fats and includes mainly natural, unprocessed foods. In addition, the country has succeeded in promoting a healthy and active lifestyle. Even in their old age, many Japanese seniors continue to exercise regularly.
  5. Rapid economic growth was seen in the country in the 1960s and the Japanese Government made great efforts to invest in the country’s healthcare system. In 1961 the country adopted universal health insurance for their citizens which included vaccination programs and medical treatments that greatly decreased both adult and child mortality rates.
  6. Increased economic prosperity is a contributing factor. After World War II, Japan experienced an extremely rapid growth in its economy. Increased economic prosperity led to medical technology advancements, universal healthcare access, improved diets and lifestyles, decrease in disease and deaths, improvements in education and lower mortality rates. Economic prosperity and life expectancy rates are related, as seen in Japan.
  7. A smaller poverty gap can also account for life expectancy in Japan. In the 1970s, Japan had a smaller income and wealth gap in the population compared to many other developed countries and it has been proven that a higher inequality in wealth correlates to higher mortality rates.
  8. Successful health education and a well-established health culture is what Japan is known for. Majority of citizens engage in regular physician check-ups and receive vaccinations and immunizations. Furthermore, Japanese people are encouraged to reduce their salt intake and red meat consumption, advice the people take seriously.
  9. Practice of good hygiene is another factor in explaining the high life expectancy in Japan. Common practices such as handwashing and cleanliness is normal in Japan but the country also has sufficient access to clean, safe water and sewage systems as well.
  10. Decreased cerebrovascular diseases. Historically, Japan has always had low rates of ischemic heart disease and cancer compared to other developed, high GDP countries. However, Japan had one of the highest rates for cerebrovascular disease from the 1970s-1980s. Thanks to health developments, Japan has greatly decreased their rates of cerebrovascular diseases within the past 20 years.

– Bolorzul Dorjsuren
Photo: Flickr

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The Good News: Greek Startups Are Helping the Economy

Greek startups are helpingEntrepreneurs in Greece are finding ways to battle the financial crisis that has crippled its economy. While entrepreneurship in Greece has predictably prospered in the tourism sector, many new startups are finding success in technology, science and engineering. In 2018, Greece was named the European Capital of Innovation by the European Union and ranked 11 in the world by the Global Innovation Index for science and engineering graduates. Via innovative ideas, Greek startups are helping the economy by creating jobs and stimulating economic development.

Augmenta

Founded in 2016, Augmenta has been helping farmers decrease their costs while increasing production. The video device uses machine learning to analyze tractor movements, increasing yields by 15%, reducing chemical field inputs by 20% and improving field end production by 15%. Another advantage of this innovative technology is that the more the farmer uses the device, the more data will become available to the other farmers. Augmenta’s benefits are promising for farmers and the agricultural industry as a whole.

Neos Beyond Payments

With the increasing demand for contactless payment due to COVID-19, Greek startup Neos Beyond Payments is finding its place in the economic market. The wearable device has now taken off in the European market and continues to expand into Scandanavian markets as well. In partnership with a Swedish technology firm, Fidesmo, Neos makes it possible for you to tap and pay on any contactless terminal, the same way you do with your payment card, by using the Neos wearable bracelet. With more demands for contactless payment options, the Neos wearable device will be useful in all markets.

Inagros

Inagros is another one of the Greek startups helping the economy by creating innovative technologies for farmers and agronomists. Inagros’ innovative web platform delivers data through satellites and sensors to enhance crop production and reduce the consumption of water, fertilizer and energy. This new technology is expected to be a pillar in the development of the smart farming revolution, with innovations expected to significantly impact automatization and sustainable management in particular.

Rebuilding the Greek Economy

The bailout in 2010 was just the beginning of the collapse of Greece’s’ financial economy. By 2015, the country had borrowed more than €289 billion, the largest bailout a country has ever received. As a result of which, entrepreneurs, scientists and professionals fled due to the dying economy. Entrepreneurs in Greece that persisted during these years created momentum and paved a path for future entrepreneurs to continue to contribute to rebuilding the fallen economy. While Greece continues to fight through financial barriers, a booming economy may be on the horizon, with Greek startups helping the economy by creating innovative market opportunities that steadily bring life back into a fragile economy.

– Brandi Hale
Photo: Flickr

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How Mexican Avocados Are Reducing Poverty

mexican avocadosMexico is the second-largest nation in Latin America with over 130 million residents. Mexico exports an abundance of fruits and vegetables but its number one export crop is avocados. Not too long ago, avocados were not the number one crop being exported from Mexico. Today, the economic impact of Mexican avocados has helped many people escape poverty.

Poverty in Mexico

According to the World Bank, in 2018 almost 42% of Mexicans lived in poverty, with the rural population being the most impacted. Moreover, around 62% of Mexican children make it to high school and only 45% graduate. To reduce poverty, Mexico has increased its social spending to help those in need. The Mexican government has implemented programs such as cash transfers, farmland subsidies, scholarships and subsidized medicine. These programs are put into place in the hope of reducing poverty in Mexico.

The Mexican state of Michoacan is one of the poorest in the country. A whole 46% of people in the state lived in poverty in 2018.  However, Michoacan is rich in agriculture. In fact, around 20% of the land is used for agriculture and the industry employs 34% of the population. Moreover, Michoacan’s most popular crop is the avocado.

The Avocado Industry Boom

Michoacan is the top producer of avocados not only for Mexico but for the entire world. Increased demand for avocados has created an economic boom in the country. Mexican avocados make up 82% of all U.S. avocado sales. Furthermore, Mexican avocados have created more than 30,000 U.S. jobs and have an economic output of $6.5 billion. Even during the COVID-19 pandemic, avocado sales were flourishing.

The United States had banned the import of Mexican avocados in 1914 due to fears of insect infestation. In 1994, The North American Free Trade Agreement (NAFTA)  implemented between Mexico, Canada and the United States resulted in the ban being lifted. The agreement led to the free flow of Mexican avocados into the U.S. The company Avocados From Mexico (AFM) has sold 2.1 pounds of avocados in 2020 and expects 2.3 pounds to be sold in 2021. Mexican avocados have had such a great economic impact that they are called “green gold” by the locals.

Impact of Mexican Avocados

The increased demand for Mexican avocados has led to less migration of Mexicans into the United States. The competitive wages avocado farming has produced has meant many more Mexicans are willing to stay in their home country. The popularity of avocados has led to the creation of thousands of jobs in Mexico. Due to this fact, families do not feel the need to migrate to the United States for employment.

The demand for Mexican avocados has led to employment opportunities, less migration and closer economic ties to the United States. The Mexican avocado industry is playing a part in reducing global poverty.

– Andy Calderon Lanza
Photo: Flickr

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Women’s Rights in Tunisia and Entrepreneurship

Women’s rights in TunisiaFor neighboring countries, Tunisia is a model of women’s rights. Although women’s rights in Tunisia are lacking in some areas, activists and lawyers have consistently worked to dismantle patriarchal social structures.

Poverty in Tunisia

The national poverty rate consistently fell between 2005 and 2015. In 2005, the poverty rate in Tunisia was 23.1%, and in 2015, the poverty rate was 15.2%. Poverty tends to disproportionately affect inland regions in Tunisia.

Inland regions register higher rates of poverty than coastal regions. This difference is often stark. In Centre West, a landlocked region, the rate of poverty was 30.8%, whereas, in Centre Est, a coastal region, the poverty rate was 11.4%. The national poverty rate for men and women, however, was nearly identical.

Role of Women in the Economy

By 2005 the number of female entrepreneurs in Tunisia was nearly 5000 and had impressively doubled to 10,000 by 2008. Despite the expansion of women’s rights in Tunisia, which has played out through a legal process, deferral to traditional gender roles continues to hold women back from pursuing entrepreneurial roles in society. A 2010 study found that this may be explained by an “inadequate support system” for women in Tunisia who aspire to develop careers in the business world.

Mowgli Mentoring

The development of a strong support system for women entrepreneurs in Tunisia is the goal of Mowgli’s partnership with the European Bank for Reconstruction and Development (EBRD). The initiative partnered 12 Tunisian businesswomen with Mowgli mentors for a year. Its goal was to create a new culture of support and sustainability that will foster “economic and societal development throughout Tunisia.”

This approach is fundamental to shift the business culture in Tunisia. Institutional support for women entrepreneurs is tantamount to their success. Women entrepreneurs generally receive less institutional support than their male counterparts receive upon starting a new business. This includes a lack of financial support from financial institutions. Women entrepreneurs are also less likely to be offered opportunities to participate in business training, courses or schooling.

Women Entrepreneurs in Tunisia

Despite these obstacles, women entrepreneurs in Tunisia have developed innovative ways to improve support for women in business. Raja Hamdi is the director of the Sidi Bouzid Business Center. The center supports startups by providing mentors to evaluate business and market trends.

The Sidi Bouzid Business Center works closely with the Mashrou3i program, which is a partner of Go Market, a research and marketing firm located in the Kairouan region of Tunisia. Go Market was founded by female entrepreneur, Hayfa Ben Fraj. It works strategically in market analysis to support a “wide range of sectors and diverse fields such as technology, crafts and agriculture.”

Working Toward an Inclusive Economy

Although patriarchal structures of repression endure in Tunisia, the overall attitude is one of progress, equality and inclusion. Constituting one half of the population in Tunisia, women represent a latent workforce with the potential to reshape Tunisia’s economy through a series of innovative programs based on a culture of mutual support. Women’s rights in Tunisia will continue to increase as entrepreneurial opportunities for women flourish.

– Taylor Pangman
Photo: Flickr

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Health Innovations in the Philippines

Innovations in the PhilippinesOver the past decade, there have been drastic innovations in the Philippines. The country has experienced dramatic economic growth and development. In 2019, the Global Innovation Index (GII) found that the country improved on all metrics used to calculate advancement. In specific, several health innovations in the Philippines help the nation achieve better health for its citizens.

Economic Growth

In 2019, the Philippines appeared for the first time in the “innovation achievers group.” The country outperformed many other countries in the area.  Some of the metrics used to calculate these scores include increased levels of creative exports, trademarks, high-tech imports and employed, highly educated women.

As a country, the Philippines has risen 19 spots in the ranking since 2018, to 54th out of 129 participating countries. This indicates a significant increase in the standard of living for many Filipinos. This is apparent in the significant decrease in the nation’s poverty rate over the past few years. From 2015 to 2018, the national poverty rate dropped a total of 6.7%, or by 5.9 million people.

Prosperity is largely due to the success of local business owners and entrepreneurs who have used their influence and prosperity to help those in need in their communities and countries, especially in the health sector. Coincidingly, the world noted a significant increase in global trade. Both factors have propelled the Philippines into the global economy as an important emerging market to keep an eye on.

Global Benefits

In 2018, the Philippines and the United States’ trade relationship developed significantly. The total goods trade was $21.4 billion collectively, in the petroleum and coal, aerospace and computer software, motor vehicles and travel/hospitality sectors. This is beneficial to the U.S. because the international trade sector employs more than 39.8 million U.S. citizens. As the Philippines becomes more prosperous, more Filipinos are able to pour money and resources into helping marginalized communities across the country. As such, there has been an increase in innovations in the Philippines, notably in the health and medical sectors.

Health Innovations in the Philippines

  • RxBox. A distinct industry on the frontlines of innovations in the Philippines is the health sector. Increased health for a population directly relates to better access to opportunity and a higher standard of living overall. One company doing this important work in the Philippines is RxBox. RxBox was developed by the country’s Department of Science and Technology. It is a biomedical telehealth system that provides health care and diagnoses to people in communities that are remote and difficult to access. The service is additionally available to people who do not have access to or the ability to travel to health care centers. RxBox is a game-changer for disadvantaged people who would otherwise not be able to obtain fast, effective medical care. RxBox reduces costly hospital and medical visits, which facilitates better health for people. Communities are then better able to care for themselves and for their families, providing greater opportunities for everybody.
  • Biotek M. There is another player in health innovations in the Philippines: Biotek M, a revolutionary diagnostic kit for dengue. A local team at the University of the Philippines Diliman stands as the mastermind behind this new technology. Traditionally, the Polymerase Chain Reaction (PCR) test is used to confirm the disease but can cost up to $8,000 and takes 24 hours to get results. This is inaccessible to lower-income people who are oftentimes the demographic most commonly afflicted by the dengue infection. The kit helps reduce resource usage for both medical centers and patients by significantly streamlining the diagnosis process.  In 2017, the Philippines recorded 131,827 cases of dengue with 732 deaths, mostly impacting young children aged 5 to 9. Being able to quickly diagnose and treat people who contract this illness is beneficial for people living in poverty.

When people can spend less time, energy and money on their health upkeep, they are able to use their resources more efficiently and prioritize other investments, such as education. In this way, health innovations in the Philippines and a growing economy directly increase the standard of living for impoverished Filipinos.

– Noelle Nelson
Photo: Flickr

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Hunger in Belarus

Hunger in Belarus

Located between Poland and Russia, Belarus was part of the Soviet Union before its post-Cold War decline. After the fall of the USSR, it began a long transition to adapt to a changing global dynamic, eventually switching from a command economy to a highly centralized form of market socialism. 

Due to its resilience and economic success, food insecurity is not a significant issue for the country today. However, vulnerabilities closely tied to hunger still pose nationwide threats to its stability, and require a combination of state reform and international intervention to prevent further escalation.

Low Levels of Hunger

Below are five indicators that define the current state of hunger in Belarus:

  1. Belarus is currently one of 20 countries that has a Global Hunger Index (GHI) rating of less than five. Countries with rates of less than 10 are at low risk of hunger, which is measured by levels of undernourishment, child stunting, child wasting and child mortality.
  2. Belarus’s food market is expected to grow annually by 9.42% from 2024–2029, with a revenue of $14.57 billion in 2024. It is also expected to show a volume growth of 2.7% in 2025.
  3. Agriculture is a significant sector of the Belarusian economy, contributing to the country’s food security and export growth. In 2022, agriculture constituted 7.71% of the country’s GDP. Innovative methods such as vertical farming have increased yields without the use of harmful pesticides or chemicals.
  4. Poverty remains low in Belarus, decreasing from 3.9% in 2022 to 3.6% in 2023. According to the World Bank, poverty levels are predicted to remain relatively unchanged in 2024 and 2025.
  5. Health care is easily accessible to all Belarusians, including those in rural areas. As of 2023, Belarus has 53 medical practitioners and 137 mid-level medical personnel per 10,000 people, which is higher than other countries like Germany, Norway, and the Netherlands.

Lingering Risks

Inflation and low wages pose risks to food security in Belarus. The annual inflation rate has been gradually increasing since October 2023 and was reported to be 5.8% in June 2024. Price surges in fresh produce have accordingly been observed in 2023 and 2024, with the cost of foods such as cucumbers, white cabbage and grapes rising nearly 20% in comparison to previous years. The Eurasian Development Bank currently predicts that inflation could accelerate to 8% due to a weaker exchange rate and increased domestic demand.

As of January 1, 2024, the minimum wage in Belarus is BYN 626, or $191.22, which is intended to cover the cost of basic necessities like food, clothing and utilities. However, this is less than the average salary in the United States and other European countries. Additionally, workers in industries outside of technology are often subject to lower wages – the average salary of education workers in November 2023 was 1,098 BYN or $343, which is insufficient to afford foods with inflated prices or sustain a healthy diet long-term.  

Sustaining Stability

Countering inflation has been one of Belarus’s key goals in 2024. Restrictions on the transit of Belarusian potash fertilizers, which account for 20% of the global supply, resulted in a large price increase for the product. Despite backlash from the European Union, the Belarusian government has taken an anti-sanctions stance in an effort to prevent food security issues and promote better market stability worldwide. 

Additionally, joint programs between the state and U.N. agencies have been focusing on improving the agricultural sector and supporting marginalized groups since 2022. The United Nations Development Programme (UNDP), in collaboration with the Ministry of Agriculture and Food of the Republic of Belarus, have conducted assessments in the areas of food security and agriculture to develop new opportunities for supply chains between farmers and major retailers and advance the certification of organic products. Similarly, UNICEF has analyzed the impact of factors that feed into hunger such as rising food prices and income redistribution to provide recommendations on strengthening social assistance tools. By continuing to invest in these programs, Belarus seeks to advance its technical capacity and resources necessary to support food security without susceptibility to inflation or wage fluctuations.

– Sarah Litchney, Moon Jung Kim
Photo: Wikimedia Commons

Updated: July 30, 2024

6 Facts About the Garment Industry in Nepal

Garment Industry in Nepal
Nepal is one of many developing South Asian countries that plays a substantial role in the global ready-made garment industry. These mass-produced textiles have become a staple export from Nepal, but they have also normalized the unethical practices of fast-fashion chains within the country. Over the last two decades, Nepal has struggled to regulate both economic and ethical issues within the garment industry, but the last few years have produced a shift towards a brighter future for garment workers. Here are six facts about the history of the garment industry in Nepal and the efforts to address both the problems of fast-fashion chains and the country’s economic reliance on them.

6 Facts About the Garment Industry in Nepal

  1. In the 1980s, the garment industry in Nepal boomed because of interest and funding from Indian exporters. Due to the product quota limits in India, exporters looked to Nepal to increase their production. This expanded production served to boost not only Nepal’s economy but also its reach on the global production scale. Thus, Nepal became a viable option for countries to produce and export various textiles.
  2. In 2004, intense competition in the global garment market broke out after the World Trade Organization’s Agreement on Textiles and Clothing expired. Nepal struggled to outproduce their competition and subsequently saw a fall in revenue from garment exports. The Multi-Fiber Agreement, an international trade agreement that allowed duty-free access to the U.S. for Nepal, also fell through in 2005 and further exacerbated the country’s declining international revenue.
  3. The international economic aftermath of 9/11 also negatively affected the U.S.’s reliance on the garment industry in Nepal. The U.S. was the recipient of 87% of Nepal’s readymade garments until 2002. In subsequent years, Europe, Canada, Australia, and India have become the largest markets for Nepali garments, making up 90% of the country’s exports.
  4. In the 2018 fiscal year, the garment industry in Nepal hit a new high. The industry made approximately RS 6.34 billion (approximately  $84.9 million), up 6.52% from the previous year. Despite this rise in revenue, Nepal had exported fewer garments than it had the year before.
  5. Chandi Prasal Aryal, president of the Garment Association of Nepal, claimed that the financial growth was due to a shift from quantity to quality. By focusing on producing better garments instead of more garments, other countries were willing to pay extra for better products. Because of the fine quality of the exports, those same countries are now willing to buy even more of the pricier garments.
  6. The focus on quality over quantity changes the focus of the garment industry in Nepal. Instead of relying on fast fashion practices that prioritize creating as many items as possible within a set amount of time, the industry can now shift to more ethical work forms. Thus, the quality of the garments will continue to improve and raise the value of each item, bringing more money back into the Nepali economy.

The exact reach and impact that the garment industry has had on Nepalese poverty remains unclear, but the future looks bright. The Nepalese government reports that employment data within the garment industry is “not readily available” but at the peak of its power, the garment industry employed 12% of the overall labor pool of the Nepalese manufacturing sector. As of 2019, the World Bank calculates the poverty line in Nepal to be $1.90 per person per day. Nepal lacked substantial policy in terms of a minimum wage, but the Library of Congress reports that since 2016, Nepalese workers across industries now make a minimum wage of approximately $3.74 per person per day. The modern garment industry, regulated with a minimum wage, can help lift Nepalese workers above the poverty line of the country, even if the garment industry of the past once presented a potential hurdle.

There still exists substantial work to transform the garment industry in Nepal into both a thriving industry and an equally ethical one; the country is making the first successful steps towards achieving both. This change will provide garment industry employees a better quality of life, as well as ensure that they and their families receive fair treatment.

– Nicolette Schneiderman
Photo: UN Multimedia

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7 Facts About Overpopulation and Poverty 

Facts about overpopulation and poverty Overpopulation is defined as “the presence of excessive numbers of a species, which are then unable to be sustained by the space and resources available.” While many definitions of poverty exist, the simplest is that it all but guarantees struggle, deprivation and lost opportunity.

Contemporary understandings of poverty are more holistic, rather than just quantitative measures of income. Considering factors such as health care and education helps broaden the view of poverty and its causes. Here are 7 facts about overpopulation and poverty.

7 Facts About Overpopulation and Poverty

  1. Population growth and poverty present the classic “chicken or egg” dilemma. According to Dr. Donella Meadows, “poverty causes population growth causes poverty.” Her eponymous 1986 essay explains why the classic “chicken or the egg” dilemma regarding overpopulation and poverty leads to different conclusions on how best to intervene. Dr. Meadows ultimately concludes that the question itself is less of an “either/or” and more of a “both/and” question.
  2. There is a cycle of poverty and overpopulation. One factor causes the other and vice-versa. For example, when child mortality is high (usually due to living in impoverished conditions), the overall birth rate is also high. Therefore, it is in everyone’s best interest to lower the child mortality rate by reducing poverty.
  3. There is a correlation between declining birth rates and rising living standards. Declining birth rates and rising living standards have occurred simultaneously in the developing world for decades. This relationship between fertility and economic development results in a virtuous circle, meaning “improvements in one reinforce and accelerate improvements in the other.” As a result, this pattern between fertility and economic development helps reduce poverty.
  4. By the end of this century, the population is expected to grow by 3 billion people. Over the next 80 years, the majority of the increasing population will live in Africa.
  5. Although Africa has experienced record economic growth, the much faster rate of fertility still leaves much of the population impoverished. While Africa’s economy continues to grow, the Brookings Institute notes that “Africa’s high fertility and resulting high population growth mean that even high growth translates into less income per person.” The most effective strategy to combat this is to reduce fertility rates.
  6. The number of megacities has more than tripled since 1990. Megacities are cities with more than 10 million people. Although there are currently 33 megacities in the world, that number is expected to increase to 41 by the year 2030. Of those 41 megacities, five will appear in developing countries. Megacities are susceptible to overpopulation and concerns about disease control. Furthermore, some megacities relieve poverty while others exacerbate it.
  7. A sense of taboo surrounds discussions about overpopulation. Is talking about overpopulation still taboo? Some experts believe so, citing the 17 goals and 169 targets of the UN Sustainable Development Agenda that have been silent on the issue. Luckily, philanthropists and voters are leading the way in normalizing frank discussions regarding facts about overpopulation and poverty.

Despite gradually increasing developments, global overpopulation and poverty continue to remain prevalent. Steps such as viewing poverty holistically and working to end the stigmatization and taboo surrounding discussions about overpopulation help further the much-needed improvements for overpopulation and poverty.

– Sarah Wright 
Photo: Flickr